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Tech Data fiscal 2017 shows sign of Brexit impact

Tech Data has reported numbers for Q4 and the full year that are almost flat, but in Europe things would have been better if there had not been currency issues

Tech Data has managed to keep sales almost flat for the year ended 31 January despite challenges in Europe caused by currency fluctuations.

Overall net sales were down by just 1% for both Q4 and the full year coming in a $7.4bn and $26.2bn respectively. In Europe, which generates 64% of worldwide net sales, the turnover was $4.7bn, which was 1% down on Q4 2016, but would have been 3% up on a constant currency basis.

Net income of $78.8m in Q4 and $195.1m for the full year was down by 18% and 27% respctively year-on-year, but those comparisons were skewed by a settlement the distributor had made with LCD manufacturers in the same quarter last year.

Given the changing conditions in Europe and the uncertianty caused by the US election and the subsequent shock of the success of Donald Trump the numbers from Tech Data were seen by the distributor's senior management as a positive achievement.

"Our strong Q4 results capped a historic year for Tech Data - a fiscal year of significant strategic progress and strong financial performance. In fiscal 17 we achieved all of our primary financial objectives: we gained share in key geographies, gained share in select product categories and with key vendors," said Robert M. Dutkowsky, CEO of Tech Data.

"Tech Data accomplished all of this despite a dynamic global geopolitical and economic environment, a significant vendor consolidation, and an evolving IT consumption model. On top of this, we recapitalized the company and entered into the largest, most transformative acquisition in our company's history which we completed last week. Our fiscal 2017 performance clearly validates our strategy and speaks to the strength of our operations, the quality of our management team, and the exceptional talent and hard work of our employees," he added.

The Avnet Technology Services acquisition that Dutkowsky was referring to finally closed last week and should add not far off $9.6bn revenues and a presence in Asia Pacific.

The impact of the Avnet deal should start to become clearer with the Q1 fiscal year 2018 results, which will be the first time Tech Data provides some financial guidance on the year ahead.

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